Risk that Entrepreneurs Face

The specific areas of risk that entrepreneurs’ faces are as follows:

1. . Financial risk—In most new ventures the individual puts a significant portion of his savings or other resources at stake.
2. Career risk—A question frequently raised by would-be entrepreneurs is whether they will be able to find a job or go back to their old jobs if their venture should fail.
3. Family and social risk—Entrepreneurs expose their families to the risk of an incomplete family experience and the possibility of permanent scars.
4. Psychic risk—The greatest risk may be to the well-being of the entrepreneur.

Question to Consider:

1. Describe how risk taking is an important element of entrepreneurship.